Kevin Frechette, Co-Founder and CEO of Fairmarkit.
The rise of generative artificial intelligence (GenAI), which describes algorithms that “can be used to create new content, including audio, code, images, text, simulations, and videos,” proves that AI is no longer just a buzzword. However, despite the groundswell of attention currently surrounding generative AI and ChatGPT, the technology has been changing our day-to-day lives since the dawn of the computer age, dating as far back as the 1940s. Think of Siri and Alexa, customer service chatbots, social media algorithms and automated product recommendations—once groundbreaking innovations that have now been completely integrated into the way we work and live our daily lives.
While it has been widely adopted, some business leaders are still hesitant to invest in AI due to the current economic environment. Businesses are being forced to conduct layoffs, dissolve employee perks and cut back on spending to effectively manage costs and navigate the unpredictable landscape. Companies have to be extremely thoughtful and strategic about the adoption of anything new. While it is a challenging time for many, I would argue there has never been a more important moment to harness the power of AI.
The Power Of AI And Automation For Enterprises
Despite the rise of technological advancement and automation, we still see companies waste time and resources on repetitive, manual work, such as employees participating in manual data-entry processes that require them to duplicate and reenter information. AI has proven its ability to maximize the value of employees’ time, allowing them to put their brain power toward tasks humans do best, such as generating original, creative ideas.
But whether because of adoption challenges, financial constraints or an affinity for “old school” ways of operating, many organizations are not yet reaping the benefits and potential that AI can provide. For some business leaders, it comes down to not knowing what they need. There are endless “cool” and “buzzy” applications available nowadays, but in lean times, it’s important for businesses to focus on solutions that work for them. Finding the right technology can free up employees to focus on and engage in higher-level activities—the kind that require thought, ingenuity and problem-solving solutions that can ultimately lead to growth and financial success.
Finding The Right AI Applications For Your Business
As a CEO and co-founder in this space, I have had a front-row view into recent disruptions in supply chains and the uncertainty of a post-pandemic economy—one that is forcing procurement leaders to find innovative solutions that work. Let’s explore a few of the types of AI that can be helpful in overcoming these challenges.
• AI For Contracts
With contracts being an integral part of everyday business, companies can streamline the workload using AI-powered solutions for contract life cycle management and legal task management. This tech helps companies centralize collaboration, streamline workloads and provide a 360-degree view of potential business risks, allowing for the faster creation of solid contracts.
• Autonomous Sourcing
Autonomous sourcing is an AI e-sourcing application that helps increase event automation and provide embedded decision support. (Full disclosure: My company offers this service, as do others.) With autonomous sourcing, procurement teams can better understand their company’s spend history and identify patterns and opportunities for cost savings by receiving insights and recommendations on how to reduce costs (without cutting jobs), analyze suppliers’ performance, and improve delivery times and sourcing events.
• Generative Text
A number of AI’s successful applications go beyond procurement. GenAI platforms are popular right now because they offer quick text-generation capabilities that can help consumers and businesses alike brainstorm and create emails, blogs, social media posts and more. As this technology is not perfect, it’s important to always have a human check AI-generated text for factual errors and edit the text to include a more human tone.
Addressing The Challenges Of AI
Despite the positive impact that AI technology promises, concerns about managing data security and job displacement persist. These both factor into the hesitation of some companies to adopt AI applications. It is important to realize that like any other technology, AI requires human involvement and oversight. Rather than fighting it, I believe professionals can learn about its capabilities, understand the limitations and use common sense to automate the right things, in the right way, without exposing their businesses to risk.
There is a distinct difference between embracing proven tools and “jumping on a bandwagon.” In order to harness AI efficiently, I recommend conducting proper research to identify what applications work best for your business, testing them and then establishing processes to properly leverage their power. Starting with small-scale projects, then gradually increasing complexity, can drive results that positively impact the business. Additionally, fostering a strong feedback loop between users and subject matter experts is a good starting point for continuous improvement.
Integrating AI technology into business processes can be difficult for various reasons, but it is becoming more important for navigating the uncertainty and challenges of operating a business within our current economic environment. By dedicating agile resources and embracing AI, businesses can enhance efficiency, drive innovation and thrive.
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